Annual report and accounts 2019/20

Remuneration report

Chief Executive, Chief Officer and other senior appointments

During the 2019/20 financial year we recruited a Project Manager to manage the project on scale fees and a Senior Manager Business and Procurement who is predominately responsible for managing PSAA’s work on procurement strategy. Both posts are fixed term contracts.

Remuneration policy for the Chief Executive, Chief Officer and senior staff

For all senior staff, remuneration is set by the PSAA Board, in line with PSAA’s terms and conditions of employment.

Key terms of employment for the Chief Executive and other members of the management team are as follows:

  • pension arrangement: PSAA operates a defined contribution plan with the same level of benefit for all its members. The Chief Executive and all staff are eligible to join the scheme. PSAA’s contribution is 10% of salary for all staff.
  • other terms of employment: The Chief Executive and senior managers all have permanent employment contracts and are required to give between four to six months’ notice if they resign.
Remuneration over £50,000

The number of staff with remuneration over £50,000 is shown in the table below. The bands are based on salary, employer pension contributions and contractual payments and benefits in line with the contractual terms and conditions of employment.

Band £k Number of employees 2020 Number of employees 2019
55 – 60 1
65 – 70 1
70 – 75 1
75 – 80 *1
80 – 85 **1
90 – 95 1
100 – 105 1 ***3
110 – 115 **1
120 – 125 1
140 – 145 *1
170 – 175 *1
185 – 190 *1
210 – 215 *1

* Includes employees who received contractual redundancy payments.
** Includes a payment of between £9,800 and £12,460, to the employee to ‘buy out’ previous contractual entitlement to a London travel card, following a review of terms and conditions.
*** Includes two employees who received contractual redundancy payments and one employee who received a payment to ‘buy-out’ previous contractual entitlement to a London travel card as described above.

Senior management remuneration

Remuneration details for the senior management team are shown in the table below. This includes salary, employer pension contributions and contractual allowances and benefits in line with the contractual terms and conditions of employment.

Description 2020 2019
Chief Officer *£142,973
Chief Executive £123,344 **£55,372
Chief Finance Officer £103,371 ***£113,926
2 Other Senior Managers (3 Senior Managers in 2019) ****£6,496 to £92,174 ***£103,949 to *£214,580

* Includes a contractual redundancy payment.
** Recruited during 2018, had part-year service.
*** Includes a payment to ‘buy-out’ previous contractual entitlement to a London travel card.
**** Recruited during March 2020.

Pay multiple

The relationship between the remuneration of the highest paid employee and the median remuneration of the organisation’s workforce is shown in the table below. Total remuneration includes salary, contractual payments and benefits. PSAA does not have performance-related pay. These figures do not include employer pension contributions.

Description 2020 – £ 2019 (including redundancy pay) – £
Band of highest paid – total remuneration 110k – 115k *205k – 210k
Median – total remuneration 62 101
Ratio 1.8 2.1

* Total remuneration includes salary and redundancy pay. The figures excluding redundancy pay would be as follows: band of highest paid £105k – £110k, median £51k and ratio 2.1.

Remuneration policy for Directors

There have been no changes to Directors’ remuneration during the year.

None of the Directors serving between 1 April 2019 and 31 March 2020 received other benefits from PSAA, nor were they members of the pension scheme.

Director 2020 – £000 2019 – £000
Stephen Freer 30 30
Clive Grace 8 8
Stephen Sellers 8 8
Keith House 8 8
Caroline Gardner (1) 0 0

(1) Audit Scotland does not charge PSAA for Caroline Gardner’s services.

Directors are also reimbursed for expenses directly and necessarily incurred in the performance of their duties.

In addition, the independent audit committee member, Kathryn Cearns, received remuneration of £2,000 per year.

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